Yancoal Australia Ltd Engages in the exploration, development, production, and marketing of metallurgical and thermal coal Australia, Singapore, South Korea, China, Japan, Taiwan, and internationally.
The last earnings update was 6 days ago.
More info.

The calculations below outline how an intrinsic value for
Yancoal Australia
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
Yancoal Australia's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
Yancoal Australia's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

Yancoal Australia's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Yancoal Australia's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

We assess
Yancoal Australia's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)

Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Yancoal Australia
has a total score of
5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Health

A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).

The boxes below represent the relative size of what makes up
Yancoal Australia's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Yancoal Australia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Yancoal Australia's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of
Yancoal Australia's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.

Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

ReinholdSchmidt

COMPENSATION

A$3,908,442

TENURE AS CEO

5.6 years

CEO Bio

Mr. Reinhold H. Schmidt, MEng (Mineral Economics), has been the Chief Executive Officer of Yancoal Australia Ltd., since August 26, 2013. Mr. Schmidt has over 20 years' experience in the mining industry. He served as the Chief Operating Officer of Xstrata Coal Queensland Pty Limited at Xstrata plc. He served as Chief Operating Officer at Glencore Coal Pty Limited, Xstrata Coal Pty Limited and Glencore Coal Queensland Pty Limited. Mr. Schmidt served as an Executive General of Manager of Wandoan Project and General Manager of Commercial at Xstrata Coal Pty Limited. He served as President of the Colombian Coal assets of Glencore. He has been a Director of Middlemount Coal Pty Ltd since September 20, 2013 and NCIG Holdings Pty Ltd since October 11, 2013. He served as Director of Yancoal SCN Limited from November 13, 2014 to November 21, 2014. He is a Mining Engineer with a Master's degree in Mining Engineering.

CEO Compensation

Reinhold's compensation has been consistent with company performance over the past year.

Reinhold's remuneration is about average for companies of similar size in Germany.

Management Team Tenure

Average tenure of the
Yancoal Australia
management team in years:

5.4

Average Tenure

The average tenure for the Yancoal Australia management team is over 5 years, this suggests they are a seasoned and experienced team.

Management Team

Baocai Zhang

TITLE

Chairman

COMPENSATION

A$710K

AGE

51

Reinhold Schmidt

TITLE

Chief Executive Officer

COMPENSATION

A$4M

TENURE

5.6 yrs

Lei Zhang

TITLE

Chief Financial Officer

COMPENSATION

A$687K

TENURE

5.2 yrs

James Rickards

TITLE

General Manager of Investor Relations & Corporate Affairs

Laura Zhang

TITLE

Executive GM of Group Legal & Compliance for Yancoal Australia Ltd

TENURE

1.2 yrs

Frank Fulham

TITLE

Chief Development Officer

TENURE

7.2 yrs

Board of Directors Tenure

Average tenure and age of the
Yancoal Australia
board of directors in years:

2.2

Average Tenure

56

Average Age

The average tenure for the Yancoal Australia board of directors is less than 3 years, this suggests a new board.

Board of Directors

Reinhold Schmidt

TITLE

Chief Executive Officer

COMPENSATION

A$4M

TENURE

2.2 yrs

Gregory Fletcher

TITLE

Co-Vice Chairman

COMPENSATION

A$417K

TENURE

1 yrs

Baocai Zhang

TITLE

Chairman

COMPENSATION

A$710K

AGE

51

TENURE

0.8 yrs

Fucun Wang

TITLE

Co Vice Chair

COMPENSATION

A$939K

TENURE

0.8 yrs

Lei Zhang

TITLE

Chief Financial Officer

COMPENSATION

A$687K

TENURE

2.6 yrs

Laura Zhang

TITLE

Executive GM of Group Legal & Compliance for Yancoal Australia Ltd

Cunliang Lai

TITLE

Non Executive Director

AGE

58

TENURE

5.2 yrs

David Moult

TITLE

Independent Non-Executive Director

COMPENSATION

A$210K

AGE

61

TENURE

1.2 yrs

Geoff Raby

TITLE

Independent Non-Executive Director

COMPENSATION

A$192K

TENURE

6.8 yrs

Fuqi Wang

TITLE

Non-Executive Director

AGE

54

TENURE

3.9 yrs

Who owns this company?

Recent Insider Trading

More shares have been bought than sold by Yancoal Australia insiders in the past 3 months, but not in substantial volumes.

News

Simply Wall St News

Company Info

Map

Description

Yancoal Australia Ltd Engages in the exploration, development, production, and marketing of metallurgical and thermal coal Australia, Singapore, South Korea, China, Japan, Taiwan, and internationally. It owns interests in the Moolarben coal mine located in the Western Coalfields of New South Wales; Stratford and Duralie mines located to the north of Newcastle in the Gloucester Basin; Yarrabee mine located to the northeast of Blackwater in Central Queensland’s Bowen Basin; and Middlemount mine located to the north-east of Emerald in Queensland's Bowen Basin. The company was founded in 2004 and is based in Sydney, Australia. Yancoal Australia Ltd is a subsidiary of Yanzhou Coal Mining Company Limited.

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